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For the exchange traded fund investors who are reluctant to just sit idly by while the government hikes up taxes and diminishes overall wealth, PIMCO’s resident bond guru, Bill Gross, suggests a couple of steps to hedge the pending wealth tax.

Gross expects the Treasury yield curve to remain steep for the foreseeable future. Consequently, yields on mid-term Treasuries, or those between 4 and 10 years, will remain higher than short-term notes. If investors hold an intermediate Treasury, the value would increase as it matures, and investors would also “roll down” the yield curve by selling it when it has a shorter term maturity. [PIMCO Total Return ETF Manager Gross Trims Mortgages, Treasuries]

If growth seems unsteady, dividend paying stocks provide a steady cash flow and will remain relatively stable, compared to other other stocks. If economy turns around, these companies will also benefit.